SEC Chief Paul Atkins Unveils Token Classification Framework for Cryptocurrencies Using the Howey Test

COINOTAG News, November 12 — U.S. Securities and Exchange Commission Chairman Paul Atkins outlined his token classification framework to clearly differentiate which cryptocurrencies are considered securities. The initiative underscores a shift toward a more formal digital asset regulation regime and anchors its criteria in the Howey Test, the standard used to evaluate investment contracts.

Atkins also stressed that inclusion under a framework does not render every token a security; some cryptocurrencies may sit outside the security category even when connected to investment activity. The proposed approach aims to deliver greater transparency for issuers and investors, inform compliance programs, and support consistent supervision as market participants navigate evolving definitions of digital assets under U.S. law.